FxBrokerReviews.org – Retail traders have poured an extraordinary amount of money into the stock and currency markets over the past several years, and more people are now starting to day trade.
Although fund managers and investment firms were the first to adopt this type of trading, several platforms now provide offshore brokerage accounts for retail traders. We examine the various offshore trading platforms in this article for your convenience.
Best Offshore Trading Brokers List For 2023
The top 5 offshore trading platforms you should consider are listed below, although there are many alternative offshore trading platforms from which to choose for your trading requirements.
- eToro – the overall best trading platform
- Capital.com – the best low spread offshore trading platform for forex traders
- Libertex – the best overall offshore trading platform
- Skilling – the best offshore trading platform for the lowest fees
- AvaTrade – the best offshore trading platform for high leverage
Best Offshore Trading Brokers Review
1. eToro
The best option for you if you’re seeking a convenient and consumer trading platform is eToro. You can trade over 2400 assets on this, the world’s most prominent and well-liked social trading platform, including more than 45 different currency pairings, equities, indices, cryptocurrencies, and commodities. eToro also has the benefit of offering CFD transactions, which means no additional expenses are involved. This no-fee trading option is undoubtedly one of eToro’s main draws for quick traders who open and shut accounts frequently.
Additionally, they enable you to trade using leverage on a range of assets. For instance, they provide an influence of x30 for the majority of significant currency pairs, x20 for minor currencies, and x15 for the most substantial commodity pairs. You may check your trading account while on the go by using eToro’s web portal or mobile app while trading with them. Opening an account on eToro is short and straightforward, and you have exposure not only to the many CopyPortfolios but also to a social trade route with over 17 million users. You’ll be able to do this to imitate the trades of more seasoned and successful traders, including the best rapid traders.
Additionally, eToro is heavily regulated and insured by numerous organizations worldwide, making it a reliable platform for trading treasury bonds. You need to open an account and make a minimum deposit of $200 to start, after which you may start selling immediately.
| Advantages | Disadvantages |
|---|---|
| Low to no fees | Does not support FX trading signals |
| Narrow spreads | Unsuitable for traders who employ sophisticated charting software |
| A wide variety of trading options, including equities, indexes, ETFs, cryptocurrencies, fiat currencies, and commodities | |
| Tools for social trading and copy trading are accessible. | |
| Is overseen by the UK FCA |
2. Capital.com
Capital.com is another extremely well-liked trading platform among international traders, particularly those that deal in FX pairings. With over 138 FX pairings, including some of the most exotic, readily available for trading, it offers one of the widest selections of currency pairs. You can trade with leverage of up to 100x on the site. It provides incredibly narrow spreads, such as 1.3 pip for GBP/USD and 0.8 pip for EUR/USD pairs.
You have two choices when you trade on Capital.com. Use their trading platform instead, which has various tools and functions. The program also uses machine learning and artificial intelligence to provide forex trading indications and recommendations based on your behaviors. The second choice is to combine the brokerage service provided by capital.com with the MT4 trading platform. For experienced traders who want to analyze forex pairings using a variety of charting and statistical tools, MT4 is a better option. Additionally, MT4 supports several algorithmic techniques, including trading bots.
Several international regulatory organizations, including the FCA in the UK, have strict regulations in place for Capital.com. There is a very cheap minimum deposit amount of merely 20 EUR, GBP, or USD.
| Advantages | Disadvantages |
|---|---|
| 138 FX currency pairs, which include some of the unique trading possibilities | Is not signal-supporting |
| Leverage up to 100 times | |
| A variety of trading platforms that work with MT4 | |
| Reasonably low deposit minimums | |
| Strictly regulated and insured | |
| Makes trading advice using AI technology |
3. Libertex
Libertex supports several asset types, including stocks, metals, and currencies, and is undoubtedly one of the oldest and most reputable offshore trading platforms. Its forex trading is highly praised because it is well known for being the best broker to operate with through the MT4 and MT5 platforms. You can trade more than 51 currency pairs with a leverage of up to 30x.
It is the perfect offshore trading platform since it has no spreads, allowing you to buy and sell an item for the same price instantly. The low commission rate of 0.006% on each trade makes it the perfect platform for quick traders.
Libertex would permit you to trade with leverages as high as 1000x on specific currency pairings if you are a professional trader and satisfy their criteria for being deemed experienced, probably the biggest in the market. Libertex is interoperable with MT4 and MT5, just like Capital.com. Still, you may also use their trading platform, which features a variety of capabilities like overall market research, built-in social media feeds, and several customizable signal services.
| Advantages | Disadvantages |
|---|---|
| Backs up MT4 and MT5 | Computation times are longer than those of its rivals |
| High leverage for skilled traders, up to 1000:1 | |
| A very cheap minimum deposit requirement of just 10 GBP | |
| CySEC regulates and offers insurance | |
| Extremely cheap commissions and costs |
4. Skilling
Skilling is a comparatively recent platform, but it has become relatively quickly popular due to the enormous leverage it provides for all traders. Compared to most highly leveraged forex brokers, it offers forex and CFD products with power of up to 500x for major and 200x for small currency pairs. Additionally, to provide FX pairings for trading, it offers commodities (with 100x leverage), gold, and silver (with 200x leverage). It also gives users access to equities and cryptocurrencies, but these have far lower leverages of 10x and 5x, respectively.
The site is overseen by the CySEC and levies no charges or fees on trading. They offer copy trading for people who want to benefit from more experienced, rapid traders’ experience and have very narrow spreads.
| Advantages | Disadvantages |
|---|---|
| The platform has 800+ financial instruments | ETF trading is prohibited |
| Controlled by the CySEC | |
| No commissions or trading costs | |
| Provides services for copy trade |
5. AvaTrade
Avatrade is the best option for you if you’re a skilled trader seeking cutting-edge trading tools, highly leveraged trading, and accessibility to various financial instruments. Avatrade is not only one of the top forex offshore trading brokers, but it also supports the MT4 and MT5 trading platforms. It works with many automatic trading programs, including ZuluTrade, AvaSocial, and DupliTrade.
The fact that Avatrade provides incredibly high leverage for the majority of trades, nevertheless, maybe the company’s largest USP. For instance, it gives leverage of 400x on most currency pairings, making it very well-liked by experienced traders who are at ease with the risk. Avatrade also offers narrow spreads fixed throughout the day (0.9 pip for the EUR/USD pair and 1.6 pip for the GBP/USD pair). It provides the possibility to trade CFDs, allowing for low fees and ample leverage while switching vanilla choices.
Also read: AvaTrade Broker Review 2022
| Advantages | Disadvantages |
|---|---|
| Licensed in six separate countries and accordance with UK regulatory standards | Offers a somewhat small selection of financial assets for trading |
| Has an expert desktop platform and offers vanilla FX choices | |
| MT4 and MT5 suitable for advanced methods | |
| Tight spreads and minimal fees | |
| Leverage up to 400 times | |
| Minimal deposits start at just 100 USD/GBP |
Best Offshore Trading App
Depending on your trading goals and experience level, you will choose a platform that meets your requirements and preferences. Libertex, however, is by far the best offshore trading platform. It is a reliable offshore trading brokerage service for day traders because it is incorporated and authorized in Cyprus and offers a wide variety of assets you can trade, like equities, commodities, and currencies. They work with both the MT4 and MT5 trading platforms and provide minimal spreads and considerable leverage. They also feature cheap minimum deposits and are well recognized for their zero-spread trade and above.
Also read: The Best Stock Trading Apps of 2022
How To Choose The Best Offshore Trading Platform
When choosing the best offshore trading platform for your requirements, there are various considerations to bear in mind. You should consider several things before settling on a specific broker because your selection of a broker will directly and proportionally affect how successful your trading plan is. The following is a listing of the numerous elements that merit discussion.
1. Norms And Security
Even for a standard trading account, the broker you choose is essential. This assumes even more significance for an offshore account because your money’s security and safety are the greatest priority. For several reasons, you must pick a broker who is regulated. The first and most important justification is that licensed brokers are checked and watched over to make sure they don’t take advantage of or mislead their clients. Since market-making brokers have a conflict of interests between their trading division and brokerage business, this is especially crucial in their case.
As a result, if you trade with an unlicensed broker who places trades, they can have a propensity to skew prices against you if they are experiencing sizable losses. Your profitability as a trader on the opposing side of the trade will suffer. Working with a regulated broker eliminates this danger because they cannot influence prices depending on their whims and caprices.
Also read: Five Best Forex Trading Apps
2. Assets
An offshore trading platform’s diverse assets should be considered before trading. It is usually best to trade on an offshore trading brokerage platform that offers a variety of equities, even if you are only intending to be trading one or two types of assets. If you decide to broaden your trading views and start offshore day trading other assets, this will come in handy later.
Additionally, as they must serve a wide range of traders, platforms that provide access to many asset classes typically have more functionality than other platforms. You can often trade stocks, currencies, metals, indices, ETFs, and cryptocurrencies on multi-asset offshore trading platforms.
3. Fees
Another crucial factor impacting your bottom line is the fees you spend. They also influence the methods you can use on a specific platform. For instance, an offshore trading platform that levies hefty commissions on each trade you place suggests that you won’t be able to swipe trade using it because the commissions will ultimately eat up your slim profit margins, producing insignificant earnings or even losses.
Trading and non-trading fees are the categories under which the platform charges fees. Trading costs are the charges a trader makes each time they execute a trade; these charges may take the shape of a commission or a spread. Non-trading fees, on the other hand, are charges that have no connection to the account’s trading activity. For instance, this might apply to idleness, deposits, withdrawals, and account administration charges.
4. Commercial Commission
For each trade order you make, you must pay a fixed commission. Since commissions are established in advance, one of its benefits is that you may account for them while developing a trading strategy or backtesting an existing one. The more you trade, the cheaper your commissions will be because commissions are typically based on volume. However, commissions might occasionally be more expensive than spreads.
5. Spreads
The other kind of trading cost that a platform may impose is a spread, which often refers to the difference between an asset’s buy and sell rates. Platforms may charge either fixed or adjustable spreads. Variable spreads change throughout the trading day according to market instability and availability, whereas fixed spreads remain consistent. You should be aware of your broker’s spread and if it is constant or changeable. Depending on the products you want to trade, various brokers have different spreads. Spreads might even differ within the same asset class.
Conclusion
Retail traders increasingly turn to offshore trading to avoid taxes and access a more extensive range of marketplaces. When trading through an offshore trader, there are several crucial factors to keep in mind, all of which have been covered. These include overarching platform concerns like the list of available asset classes and trading costs. The platform’s trading features, such as its analytical features and the many order types that may be sent through it, are also included.
